In the registered users centre we have just posted a new free fact sheet on Planning for Care and Deprivation of Assets. Get a copy of the fact sheet.
What is it about? The subject of care in old age always ruffles the feathers of people that will have to pay for their own care and not have it paid for by the State.
Whilst nursing care is paid for by the State, at three different levels depending on the level of care needed, residential care is still means-tested. Generally, if you have assets (including your home) over £19,500 you will have to fund your own residential care. This could mean an outlay in excess of £300 per week.
Many people that own their homes will automatically move into the bracket of paying for their own care. Some of these people feel that they will be penalised for making something of themselves and building up assets, so as not to rely on the State. They feel this is unfair when those people with no assets or income get their care paid for free.
There has always been talk of giving away assets in order to bring yourself down below the £12,000 bracket where care is free. However, this is not advisable and is treated as Deprivation Of Assets.
There are many ways of paying for care in old age and your home need not always be taken into account. Remember, seek independent financial advice because "mitigation is legal but avoidance is illegal"